Afya Limited Announces a New Share Repurchase Program

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) has announced a new share repurchase program after successfully completing its previous one, which bought back 1,383,108 Class A common shares. The new program allows for the repurchase of up to 1,874,457 shares, equating to 4% of its free float, from January 27, 2022, to December 31, 2022. The shares will be purchased in the open market or via private transactions, depending on market conditions. These repurchases aim to support stock options, future business combinations, and general corporate purposes.

Positive

• Share repurchase program of up to 1,874,457 shares may enhance shareholder value.
• Repurchase initiative reflects confidence in future growth and financial stability.

Negative

• Funding for share buybacks will depend on available liquidity and future dividends, which could pose financial constraints.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA), today announced that, after the completion of its second share repurchase program, that resulted in the purchase of 1,383,108 Class A common shares, its Board of Directors has approved a new share repurchase program. Under the share repurchase program, Afya may repurchase up to 1,874,457 of its outstanding Class A common shares which represents 4 % of its free float, in the open market, based on prevailing market prices, or in privately negotiated transactions, beginning on January 27, 2022 until the earlier of the completion of the repurchase or December 31, 2022, depending upon market conditions.

The share repurchases may be made from time to time through open market transactions and are subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, regulatory, and other relevant factors. The share repurchase program will take place in accordance with the conditions established by the Board of Directors on January 26, 2022. Afya intends to repurchase the shares for use in its stock option program, consideration in futures business combinations transactions and general corporate purposes.

Afya’s Board of Directors will review the share repurchase program periodically and may authorize adjustments to its terms and size or suspend or discontinue the program. Afya expects to utilize its existing funds and future dividends to be received from Afya Participações to fund repurchases made under this program.

The Board of Directors of Afya also authorized management to appoint BofA Securities, Inc. as its agent to purchase the shares on its behalf in the open market. It is Afya’s intention that such purchases benefit from the safe harbor provided by Rule 10b-18 (“Rule 10b-18”) promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended. Accordingly, Afya shall not take, nor permit any person or entity under its control to take, any action that could jeopardize the availability of Rule 10b-18 for purchases under the program.

About Afya:

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005599/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br

Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya Limited

FAQ

What is the purpose of Afya's new share repurchase program?

The new share repurchase program aims to enhance shareholder value, support stock options, and consider future business combinations.

How many shares will Afya buy back under the new program?

Afya plans to repurchase up to 1,874,457 Class A common shares as part of the new program.

When will Afya's share repurchase program take place?

The program will run from January 27, 2022, until the earlier of completion or December 31, 2022.

Who is executing the share repurchase for Afya?

BofA Securities, Inc. has been appointed as the agent to conduct the share repurchases on behalf of Afya.

What impact could the share repurchase have on Afya's stock price?

The share repurchase may support the stock price by reducing the number of available shares, potentially increasing demand.